Overview Of The Aig African Infrastructure Fund

1. Overview of the
AIG African Infrastructure Fund

2. Emerging Markets Partnership
Founded in 1992 by Moeen Qureshi and Don Roth

Worldwide staff of over 70 professionals

Offices in Washington DC, Abidjan, Brunei, London,

Hong Kong, Singapore, Johannesburg and Bahrain
Nearly US$6.0 billion under management

Structured over 90 transactions in 30 countries

Overview of the AIG African 2
Infrastructure Fund

3. AIG African Infrastructure Fund
Core investors:

 American International Group (AIG)
 International Finance Corporation (IFC)
 African Development Bank (ADB)
 El Paso Energy
 Development Bank of Southern Africa (DBSA)
 Proparco
 European Investment Bank (EIB)
Overview of the AIG African 3
Infrastructure Fund

4. AIG African Infrastructure Fund
Largest private equity fund focused on Africa

Commitment of over $400 million from 16 investors

Closed in April 2000

Five-year commitment period

Ten-year fund life

Target: 20-25 % annual return to integrate net of

Management fees
Overview of the AIG African 4
Infrastructure Fund

5. AIG African Infrastructure Fund
Chairman of Board of Advisors: H.E. Nelson Mandela

Chairman of Investment Committee: Donald Roth

Staff : Edward V. K. Jaycox - Chief Executive Officer

Thomas R. Gibian - Chief Operating Officer
14 Professionals :- (8 from Africa)
Three offices: Washington DC, USA;

Abidjan, Côte d’Ivoire;
Johannesburg, Republic of South Africa
Overview of the AIG African 5
Infrastructure Fund

6. AIG African Infrastructure Fund
Modus Operandi I

 Infrastructure – wide definition – all but real
estate and financial institutions
 Very selective: - Countries
- Partners
- Transactions
 Invest in Companies not Projects
 Strategic Partners – growing companies, with aggressive
business plans in Africa, especially multi-country companies
 Private Sector companies - no Government controlled
companies;
- no start-ups
Overview of the AIG African 6
Infrastructure Fund

7. AIG African Infrastructure Fund
Modus Operandi II

Equity – Quasi Equity

 Minority Share with strong Minority Rights and
Board Seats
 Prudential Limits - 10% of Fund ($40 million)
in any single firm
- 20% of Fund ($80 million)
in any single country
- $10 million minimum
investment
 Due diligence by Fund Staff often supplemented
by consultants
Overview of the AIG African 7
Infrastructure Fund

8. AIG African Infrastructure Fund
Modus Operandi III

 Returns from Capital Appreciation
 Hold 3-5 years
 Exit - IPO
- Trade Sale
- Put
Overview of the AIG African 8
Infrastructure Fund

9. AIG African Infrastructure Fund
Funds Committed to Date $254.0 million

Average Investment Size $18.0 million

Investments in near pipeline $80.0 - $100.0 million

Fully Committed by December 2004

On track to deliver 20-25% per annum net return to

Investors by end of Fund Life
Overview of the AIG African 9
Infrastructure Fund

10. AIG African Infrastructure Fund
• Sectoral Distribution: Diversified
Telecom Agribusiness Oil & Gas Transportation Media Power Other Logistics
Overview of the AIG African 10
Infrastructure Fund

11. Geographic Distribution of
Portfolio and Pipeline
Tunisia 2%
Morocco 16%
Egypt 1%
Burkina 1% Algeria 12%
Senegal 1% Uganda 4%
Chad 3% Sudan 1%
Nigeria
7%
5% or more
Cote d’Ivoire 6%
Ghana 1%
Less than 5%
Cameroon 5%
DRC 3%
Other Countries include
•Malawi Eq Guinea 3%
Tanzania Kenya 1%
•Mali 9%
Gabon 9%
•Niger
•Sierra Leone Angola
•Namibia Congo B 3%
•Mozambique
•Rwanda
Zambia 5%
Unallocated = 5% South Africa 2%
Overview of the AIG African 11
Infrastructure Fund

12. EMP-AFRICA FUND II
Follow-on Fund

 $400-500 million Fund size
 Aim first closing by 1st Quarter 2005
 Widen Sectoral scope – Beyond Infrastructure
 Increase prudential limits
 Off to a fast start
Overview of the AIG African 12
Infrastructure Fund

13. EMP AFRICA FUNDS
Contacts:

Edward Jaycox: jaycoxk@empw.com
1-202 530 3136
Thomas Gibian: gibiant@empw.com
1-202 530 3104
Emerging Markets Partnership: www.empwdc.com
Fax: 1-202 331 8255
2001 Pennsylvania Avenue NW, Suite 1100
Washington, DC, 20006
USA
Overview of the AIG African 13
Infrastructure Fund